Is it possible to enjoy doing legal due diligence work?

Due Diligence

I get a bit skeptical when interviewees or junior lawyers say they enjoy doing legal due diligence work.

My first reaction would be, “Really?”

Is it possible to enjoy doing legal due diligence work?

The volume of documents to be reviewed, tight deadlines, amount of effort required to get complete and relevant information from target companies, high level of attention to detail required to identify all issues, and mind-numbing/mundane task of aligning tables and formatting reports, make legal due diligence a tedious process.

If you aspire to do corporate transactional work, legal due diligence will be a big part of your work.

On the upside, you’ll learn about the law relevant to your practice area while carrying out due diligence exercise. After all, you will be able to identify issues only if you have done your research and know the relevant law.

You’ll learn to provide solutions. It’s not much use if you merely highlight issues in due diligence reports without recommending solutions to clients.

You’ll learn to be concise (or at least try to). No one wants to read verbatim extract of contracts in legal due diligence reports.

You’ll learn to be meticulous. There’s a (big) difference between RM10,000,000 and RM100,000,000 when you insert the wrong amount of consideration of a contract in a report.

Maybe, with all the upside, it’s possible to enjoy doing legal due diligence work.😆

#malaysiancorporatelawyer
#lawyers
#lawyering

This post was first posted on Linkedin on 1 July 2022.

Linkedin Post
Conversation on W&I Insurance in M&A Transactions

As an M&A lawyer with a keen interest in the nuances of the M&A field, I’ve observed that warranty and indemnity insurance (W&I) is not that common in M&A transactions in Malaysia, as far as I know. Therefore, when I saw Martijn de Lange of BMS Group commenting about W&I …

Company Law
Indirect Substantial Shareholder

A person can be a substantial shareholder in a company without directly holding any shares in that company. One of the challenges that often arises when I work on IPOs or other equity capital market exercises is the assessment of whether an individual holds an indirect substantial shareholding in a …

Company Law
Legal Requirements for Directors’ Fees and Benefits in Malaysia

One common issue I encounter in both M&A deals and IPO exercises relates to compliance with the legal requirements for the payment of director’s fees and benefits. Additionally, the legal obligations regarding director’s service contracts should not be overlooked. Here are the key points: Constitution 1. If a company, whether public …